This bill amends existing New Mexico tax law to allow the disclosure of taxpayer return information to the staff of the Legislative Finance Committee. Specifically, it introduces a new section, 7-1-8.12 NMSA 1978, which permits department employees to share return information for the purpose of evaluating programs that have a fiscal impact on the state or its political subdivisions. The bill outlines that any shared information must be aggregated to protect taxpayer confidentiality and that personally identifiable information must be redacted. Additionally, a memorandum of understanding regarding security protocols must be established between the department and the Legislative Finance Committee prior to any information being revealed.

The bill also reinforces the confidentiality of taxpayer information by amending Section 7-1-8 NMSA 1978, which prohibits unauthorized disclosure of return information. It establishes penalties for individuals who violate these confidentiality provisions, including fines and potential imprisonment. The effective date for the provisions of this act is set for July 1, 2025. Overall, the bill aims to balance the need for fiscal evaluation by legislative staff with the protection of taxpayer privacy.

Statutes affected:
introduced version: 7-1-4.2, 7-1-21
Final Version: 7-1-4.2, 7-1-21, 7-1-76